[New Business Strategies] VidOvation CTO Jachetta Explains Industry Shift to SaaS and TaaS

Read my Q&A with Mark J. Pescatore of SCN & AVNetwork

SCN: How long have you been with this company, and what are your responsibilities?

Jim Jachetta: I have been in the industry over 30 years. I am the co-founder and CTO of VidOvation. My team and I founded VidOvation in 2010.

SCN: Back in October, you announced VidOvation’s Technology-as-a-Service (TaaS) offering. Why is this different from a lease, and how does it benefit integrators?

JJ: The appealing aspect of a lease is to spread the cost of the capital equipment expense over 36 or 60 months.A possible negative is the customer is locked into the technology for 36 or 60 months. With TaaS, the payments are made over a 36 or 60-month term, except the customer can upgrade their technology anytime. One of the conditions is that the new equipment has to be of equal or higher value than the original purchase, but it means users always have an easy access upgrade path to the latest technology. TaaS avoids the pitfalls of technology end of life. Customers will never be faced with a sudden lack of product or technology support from a vendor.

SCN: Between your TaaS approach and Software-as-a-Service (Saas) solutions announced by other manufacturers, are we seeing a fundamental change in the way the Pro AV does business?

JJ: Yes. Businesses across many industries have shifted from a Capital Expenditure (CapEx) to an Operational Expenditure (OpEx) model. The modern enterprise does not want deprecating assets on their balance sheet that they have to amortize over a five or 10-year period.

SCN: Since this interview is in our Sustainability Issue, does your TaaS approach offer an element of sustainability?

JJ: As a trusted partner, VidOvation is committed to repurposing old equipment where possible and properly recycling equipment that can no longer be used. So, yes, in the sense that we take back equipment before end of life, and that equipment can be refurbished and repurposed for applications that don’t require the most recent, top-of-the-line equipment, we’re contributing to a more sustainable product lifecycle ecosystem.

SCN: IPTV is one of the core competencies of your company. What are some of the challenges integrators must consider in today’s IPTV environment?

JJ: VidOvation works closely with the prime systems integrator and the customer to ensure a smooth rollout of IPTV and digital signage on the customers’ network. One of the fundamental requirements of enterprise IPTV is for the network to be multicast and IGMP enabled.

SCN: Digital signage is another important area for VidOvation. Where do you see the biggest growth areas in digital signage installs?

JJ: VidOvation has seen growth in digital signage in casinos, resorts, hotels, convention centers, stadiums, and corporate applications. Every enterprise is seeking new ways to inform and entertain their guests, fans, attendees, and employees. A mixed-media IPTV digital signage system with text, images, video, and live television is the perfect scalable solution to quickly and efficiently provide information and entertainment.

SCN: When you are approached by digital signage customers, what are some of the elements that haven’t been considered for their installations?

JJ: In many installations, VidOvation combines IPTV and digital signage into one informational and entertainment system. This gives the user the added ability of integrating live television into the digital signage experience. It is possible to combine live TV, text, static images, and video clips all in one digital signage experience.